At AGM, B.E.L. announces loss of $16 million
Betty Tam
What is of interest to most customers is that B.E.L. hopes to reduce cost of power from CFE by ten percent by the end of July. The electricity company is seeking to get more reliable and reasonably cost power. B.E.L. is working along with the Public Utilities Commission to issue an R.F.P. over the next few years that should provide more reliable and efficient cost of power. But in the short term, B.E.L. will depend on Mexico’s provider, Comision Federal de Electricidad (CFE). But with the accounts showing a loss, News Five asked Tam if the company has access to the finances that are needed to keep the company operational.
Jose Sanchez
“How long did that debt accumulate and how long did it take to pay it off?”
Betty Tam, Senior Manager, Finance & Human Resources, B.E.L.
“Okay that debt accumulated within 2008 and 2011. If you recall, there wasn’t a rate review because of legal challenges at the courts. So because of that, the cost of power within that time was kinda low, fluctuating and because of that the thirty million plus was accumulated. That was paid back to customers within a year. We had expected to do so within four years, but because of the high cost of power during 2012, we were able to repay the entire thirty million in 2012.”
Jose Sanchez
“I know you are saying that due to the debt, you had a loss of sixteen million. When it comes to the access to the finance markets for B.E.L. to continue to be sustainable; what is the plan?”
Betty Tam
“The sixteen million loss is only a part of what you are seeing, but the complete picture, you can look at the statement of financial position in our financial statements and there you will see that the shareholders’ equity has increased over thirty million dollars. The shareholders equity is the continuous earnings of the company over the years. So that sixteen million dollar loss in 2012 is presented as such because of our transitioning from reporting. We used to report on the Canadian Gap and now we moved over to IFRS and that reporting is different. So we are no longer showing a regulated liability or asset and as such, the earnings that we would have shown…what we have earned in 2012 from customers should have been shown under statement of income. If we had done that, we would have shown a fourteen million profit. But instead of showing it in 2012, it was calculated in the retained earnings. So it is just a presentation.”
Jose Sanchez
“Because I know when you see loss…I guess the simple response I want you to tell me is if B.E.L. has access to liquid cash? Does it have capital?”
Betty Tam
“Of course because when you are sourcing for cash, when you are looking for financing and all that, the financiers will take the financial statements in its entirety; it will not only look at your statement of comprehensive income. It will take into consideration, your statement of financial position which is the true picture, which is the picture of the organization in numbers as to what you owe, what you earn and what you are worth. So that the picture…they will look at that to give us the financing. So yes, we are confident that we are able to source financing. And as such, I reiterate, as I’ve mentioned before, the series five showed that we had public confidence in the company.”
B.E.L., according to TAM, also has a Power Six Project to increase reliability and improve system maintenance. Plans are also in the works to send a sub-marine electricity line to Caye Caulker.
